Proponents of Spending on Infrastructure as a Means to Stimulate

question 13

Multiple Choice

Proponents of spending on infrastructure as a means to stimulate the economy note that the multiplier effect for ________ is estimated to be larger than the multiplier effect for ________,and would therefore have a greater impact on expanding GDP.

• A) increases in government spending; tax cuts
• B) tax increases; increases in government spending
• C) decreases in government spending; a balanced budget
• D) a balanced budget; tax increases

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Definitions:

Disposal Cost

Expenses associated with the process of disposing of waste, obsolete inventory, or equipment, including transportation, recycling, or landfill fees.

Revenue Retrieval

The process of getting back revenue that has been lost or unaccounted for through various recovery efforts or strategies.

Resale Revenue

Income generated from selling goods or services that were previously purchased.

Recycling Revenue

Income generated from selling recyclable materials that have been collected, processed, and remanufactured into new products.